Defined benefit (DB) pension transfer values rose to £141,000 at the end of June 2025, marking the first month-end increase in XPS Group’s Transfer Value Index since the start of the year, its results have revealed.

The index had previously fallen to record lows for three consecutive months, with values dropping to £137,000 by the end of May 2025 - matching a mid-month low seen in April.

However, June saw a brief recovery, with the index peaking at just over £143,000, the highest level recorded since early April 2025, which the group credited to a slight decrease in gilt yields whilst future inflation expectations remained flat.

However, XPS Group said that the index remains around 10 per cent lower than in mid-2024.

In addition to the increase in transfer values, the group's Transfer Activity Index also increased in June to an annualised rate of 25 members per 1,000 transferring their benefits to alternative arrangements.

XPS pointed out that this represents the highest rate the index has recorded since August 2023 and has continued the trend of the index remaining above 0.2 per cent over the past quarter.

It also said this could indicate that, after a period of decline, pension transfers could be regaining some of their previous popularity. 

XPS Group's Scam Flag Index also saw a small increase over June, as 88 per cent of cases reviewed by the XPS Scam Protection Service in June 2025 raised at least one scam warning flag, up from 85 per cent in May.

Despite the index showing greater volatility during this period, the group said the index average over the past six months is slightly lower than in the final six months of 2024.

In particular, XPS said the ‘overseas investment’ amber flag remains the most frequently identified scam warning sign.

XPS Group senior consultant, Helen Cavanagh, said whilst the Transfer Value Index remains at a “relatively low level”, transfer activity has been increasing over recent months, suggesting that this option is “slightly regaining some of its previous popularity”.

She noted that as a result, trustees should ensure that “appropriate support” is available to members who are considering this option.

Despite her positivity about the Transfer Value Index, Cavanagh said the uptick in the Scam Flag Index is “disappointing”.

However, she said it is “reassuring” to see that the index average has decreased over 2025.

“Reviewing the transfer regulations is unlikely to be a high priority for the government due to the volume of other significant pension industry reforms underway,” she stated.

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